Questions early
You see the full list before the first deep meeting, so documents arrive in order rather than in a rush the night before.
Verzuz s.r.o. — Znojmo
Seed-stage startup investments judged on evidence
Capital on the desk, ledger open, decisions in order. We explain how we judge early companies, how due diligence works, and how we help founders build after the money arrives.
Seed stage in practice
What seed stage means in practice
Seed stage is the first institutional round, usually funding product development and the search for repeatable customer demand. The company may have prototypes, pilot users or early sales, but the numbers are too small to judge by the methods used for established businesses.
Verzuz therefore weighs founders, market size and early traction more heavily than financial forecasts. A forecast is still requested, because the gap between the plan and the evidence tells its own story. That gap is not held against a founder who names it honestly; it is a problem when the plan pretends the gap does not exist.
Team first
Who is building, what they have built before, and whether the skills cover the product plan.
Customer next
Who pays, why they would switch, and what early users already do without being asked.
Forecast last
Useful as a map of assumptions, never as proof on its own at this stage.
Due diligence
Due diligence that founders can follow
Startup due diligence at Verzuz covers the team, the product, the market, the finances and the legal position, in that order. Each area gets a written note, and questions that cannot be answered are recorded as open items rather than glossed over.
Founders receive the list of questions early so they can gather documents without a last-minute scramble. The process is thorough because capital committed at seed stage is difficult to recover if the basics were missed.
The five lines we work through
TeamRoles, gaps, working history and whether the founders agree on the company they are building.
ProductWhat exists today, what users do with it, and what the next version must prove.
MarketCustomer size, buying process and the route to repeatable demand, not just a large headline market.
FinancesCash position, current spend and whether the amount asked for matches the milestone described.
LegalCap table, company records and any contracts or obligations a new investor is stepping into.
Written notes
Each area gets a written note. Open items stay open on the page until they are answered.
Plain declines
When we decline, the main reasons are stated in writing so a founder can use the feedback.
How Verzuz decides
How Verzuz decides to invest
Verzuz invests when the founders can explain the problem, the customer and the path to revenue in concrete terms, and when the numbers support that story.
It declines when the market is too small, the team lacks the skills to build the product, or the capital asked for does not match the milestone described. A decline is explained in writing, with the main reasons stated, so a founder can use the feedback. That candour is deliberate and applies to every submission.
Small allocations, set in order, each tied to a milestone the company can show.
Explained
The decision, the terms and the reasons are stated plainly, in writing.
Matched
Capital asked for is checked against the milestone it is meant to buy.
Usable
A decline still leaves a founder with feedback that can shape the next round.
Company building
Company building alongside capital
Capital alone rarely fixes a young company; product, hiring and sales discipline matter as much. Verzuz can support portfolio companies with software development, reporting systems and web portals built around the business's own data.
That support is practical: a founder dashboard, a customer portal or a clean accounting export can save weeks of manual work. The aim is to leave the company with systems it can run itself once the early phase is over.
Founder dashboard
Cash, milestones and decisions in one short view.
Customer portal
Customers see what they need without a support queue.
Accounting export
Clean monthly numbers for reporting and bookkeeping.
Choosing an investor
What a founder should look for in a seed investor
A founder should look for an investor who explains the decision, states its terms plainly, and stays involved after the money arrives. Seedcamp, a European seed-stage investor and accelerator, is known for combining capital with company-building support, which is the standard Verzuz measures itself against.
Founders should ask how the investor behaves when a milestone is missed, because that answer matters more than the first meeting. Clear reporting lines and honest disagreement are signs of a workable relationship.
Three questions worth asking any seed investor
- What happens when a milestone is missed — a conversation, a plan, or silence?
- Who do we report to, how often, and in what form?
- What support is actually offered after the investment, and by whom?
Why a technology company invests in startups
Verzuz's software experience makes it a useful judge of startup claims about product and technology. The team can tell whether a product is genuinely built, whether the architecture can scale, and whether the roadmap matches the resources. That technical judgement complements financial due diligence and reduces the risk of funding a presentation instead of a working system. Founders benefit from an investor who can read the code as well as the spreadsheet.
Preparing to talk
Talking to investors as a founder
Founders should prepare a short account of the problem, the product, the customer, the traction so far and the use of funds. Documents that help include the cap table, recent management accounts, and any customer contracts or pilot letters.
Verzuz reads those documents before the first meeting and will ask about gaps directly, so completeness saves time for both sides. A founder who admits what is not yet known is easier to work with than one who hides it.
After the investment: reporting and support
Portfolio companies report to Verzuz on a schedule agreed at the time of investment, covering cash position, milestones and major decisions. Reporting is kept short and factual, because a young team should spend its time on customers rather than paperwork. Verzuz reviews the reports against the original plan and raises questions early, while there is still time to change course. Support is offered where the company needs it, from software to introductions, and declined where it does not.
Bring this to the first meeting
- Cap table — who owns what today, in plain form.
- Recent management accounts — cash position and current spend.
- Customer contracts or pilot letters — evidence of real demand.
- Use of funds — the milestone this round is meant to reach.
Verzuz s.r.o., Hradišťská 3130/57, 669 02 Znojmo · [email protected] · +420 515 732 477 · Monday to Friday, 9:00 AM – 6:00 PM